Commissioner Debate PILOT Agreement for Low Income Housing

The city of Chattanooga and Hamilton county commissioners have recently backed off from approving many PILOT programs.

Those are “tax incentives” for developers to build in the community.

But commissioners Wednesday looked at one for low income housing.

In the last few months Chattanoogan Helen Burns Sharp has led the opposition to “payment in lieu of taxes” programs, saying they are giving up much-needed tax money.

But this time the Elmington Capitol Group out of Nashville proposes to build Chestnut Flats—174 much needed apartments for low income residents near Finley Stadium.

MAYOR JIM COPPINGER, HAMILTON COUNTY  “I support affordable housing. There’s a need for affordable housing and this commission has to decide whether that’s the right place for affordable housing.”

But the commission is on record to try to cut-back on PILOTS.

COMMISSIONER RANDY FAIRBANKS, DISTRICT  “If we say, Hey, no..we’re not interested in PILOTS ..we’re not going to do pilots, then our next question is: OK, if we’re not going to do that, how are we going to get people to build some housing.”

The developer does get tax credits from the federal government. But, apparently not enough.

JOHN SHEPPARD, V. P., ELMINGTON GROUP  “Number one evidence of that is the fact that we’re working on probably half a dozen identical, similar developments like this. None of them is being done without a PILOT or similar type of local financing committment…cause we just can’t do it.”

HELEN BURNS SHARP, AMC “This one in my view is a whole lot better, in that it really does what state law intended, and that is, through this PILOT it will provide housing for low and moderate income people.”

Residents there could not earn more than 27,900 dollars a year.

Joe Graham thinks the PILOT is not necessary.

COMMISSIONER JOE GRAHAM, DISTRICT  “In my opinion..my humble opinion is all about location. location, location and its very valuable..not just to that area and that community, but to our tax roles. Unless something changes Mr. Chairman I won’t be supporting this very well. “

Apartment rents will range from $600-to-$750 a month.

The city council has already passed the proposal.

Commissioners will vote on it next Wednesday.